How does foreign policy affect gas prices? One important factor is that since 1973 all oil has primarily been bought and sold using US dollars. Only two leaders have gone against this arrangement - Saddam Hussein in 2000 and more recently Mahmoud Ahmadinejad. Another major factor is US military intervention in foreign affairs. International conflicts often have more to do with oil than our leaders will acknowledge. The contributing factors in the price of oil are complicated, but we can be sure of one thing. When the US military drives down the value of the dollar by waging war, the price of gas will surely rise.